Chavan points out "errors" in GST notification

Mumbai, Sep 20 (PTI) Former Maharashtra Chief MinisterPrithviraj Chavan has claimed that the Union Finance Ministrymade an "error" while notifying the date of applicability ofvarious sections of the GST Constitution Amendment Act in thestate. Describing the decision of making Section 17 of theAct effective from September 16 (midnight of September 15/16)as an "unprecedented blunder", he said the Local Body Tax(LBT) and Octroi collection (in Maharashtra) must stopforthwith and taxes collected since September 16 be returned. Chavan’s remark came even as the Union financeministry yesterday made it clear that there is no "legalinfirmity" in the notifications issued by the government withregard to the GST Constitution Amendment Act. Some experts had raised doubt about the legality oflevying excise duty by the Centre on various commodities tillimplementation of GST from April 1, 2017, after the governmenton September 16 notified certain provisions of the Act. Claiming that the Finance Ministry was implementingthe GST in a "haste", Chavan said there were "graveimplications" in the decision. He was speaking during during a panel discussion onthe impact of the adaptation of GST on the economy of thestate — organised by the Economics Department of MumbaiUniversity, with Maharashtra Finance Minister SudhirMungantiwar also attending the event. Section 17 of the Act makes union excise dutyapplicable only on petroleum and tobacco products. "That meansno excise duty can be collected on any manufactured excisableitem with effect from midnight of September 15/16. Excise dutycollected after September 16 is constitutionally illegal,"Chavan said. He claimed that omission of entry 54 (in thenotification) makes Octroi collected by the MunicipalCorporation of Greater Mumbai after September 16 "illegal".Also, the local body tax (LBT) applicable to units with aturnover more than Rs 50 crore in the state and entry tax inother states becomes illegal. Mungantiwar said the error would be rectified andadded that GST was a major step towards transformation ofeconomy and the state law will be enacted after discussionwith all stakeholders. Mungantiwar also refuted as "baseless" the speculationthat GST would lead to inflation, the rate of the taxes willincrease and the autonomy of the local self governmentinstitutions would be threatened. PTI MR DK KISBAS